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RDP project database

Production and Sale of Straw and Fuel Pellets


The project aims to produce fuel pellets made of rapeseed straw, as well as producing pellets of normal straw that can be used as a floating crust in slurry containers. This will create a new activity for the farmer during winter time.



The idea of the project originated in order to make use of the farm's own products, as well as to create activtities to make better use of the farm buildings during the winter season. The procurement of a pellet mill will also secure work for the applicant during the winter semester, when the workload on the farm is normally substantially less than in the summer season.


The objective of the project is that through the processing of straw more added value will be achieved leading to improved profit. The pellet mill has such a large capacity that, in addition to pressing the applicant's own straw, it can process straw from other farmers and thereby make the applicant less dependent on his own harvest. It is also the objective to press different types of straw that can be used for a variety of purposes.

Main activities

The main activity of the project is a pellet mill. The objective is that this pellet mill will compact straw into pellets, making the straw more usable for a larger target group. Rape straw will be used for fuel since the fuel value of rape straw is greater than normal straw. In this way, one of the waste products from agriculture can be utilised too.Ordinary straw will also be pressed and can be used, for example, as a floating crust for fertiliser containers or as straw in stables.

Results & Benefits

The main result of the project has been the major interest in the range of new products. This brought economic benefits for the applicant and ensured job retention for the farmer. The great demand for fuel pellets also has a markedly positive environmental effect, since straw is a CO2-neutral source of fuel. The project has thus had a positive economic effect for both the applicant and for purchasers of the pellets, as well as protecting the environment.

Lessons learnt

The project has shown us that it is possible to use already existing buildings and labour to produce attractive products from agricultural waste products. However, it is clear that this type of production is generally time-consuming, especially during the start-up phase, and that this can effect other farm operations. That said, the project is an excellent example of how labour can be retained in rural districts.

Project location and other information

Haderslev Kommune, Sønderjylland



RDP Territory


Total project cost (€)

95 400

EAFRD contribution (€)

23 850

National contribution (€)

23 850

Private contribution (€)

47 700

Project website

Contact name

Jens Olaf Matzen


4042 6432

Languages for contact

English, Danish

At a glance



Final beneficiary type

Individual farmers, Local Action Group

Budget range

€20 000 - €99 999

Start date:


End Date:


Theme / Measure:

• Rural Quality of Life & Economic Diversification
• Rural economic diversification
• 311. Diversification into non-agricultural activities


Agricultural waste, Heat supply, Local Action Group, Employment, Farm diversification

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